Here's an example of using a variable in plpgsql:
create table test (id int);
insert into test values (1);
insert into test values (2);
insert into test values (3);
create function test_fn() returns int as $$
declare val int := 2;
begin
return (SELECT id FROM test WHERE id = val);
end;
$$ LANGUAGE plpgsql;
SELECT * FROM test_fn();
test_fn
---------
2
Have a look at the plpgsql docs for more information.